Kyodo reports that Japan is considering a new release of approximately 20 days worth of oil reserves from its reserves

Kyodo, a Japanese newspaper, reported that Japan is considering releasing a fresh release of 20 days worth of oil as soon as May. This comes amid uncertainty about the reopening of Strait of Hormuz despite a U.S. Iran ceasefire.

Japan, which is dependent on the Middle East to supply 95% of its oil, began releasing its?oil on March 16, in coordination with other countries and on its own.

Japan has released enough oil to last about 50 days. It also asked the International Energy Agency (IEA) to coordinate a second release.

The company has enough oil to last 230 days.

The U.S. president Donald Trump announced a ceasefire agreement with Iran on Tuesday. This was in exchange for Tehran opening the Strait of Hormuz. However, the waterway, which normally transports about 20% of world oil supplies, remains mostly closed.

Kyodo reported that an unnamed official said that an additional release of crude oil was being considered to stabilize supply as the resumption of safe sailing in the Strait of Hormuz remains uncertain.

Narumi Hokokawa, the deputy director-general of immediate crisis management for the Ministry of Economy, Trade and Industry, said that the ministry is continuing to investigate the situation.

In the week ending April 4, Japanese refineries reduced their utilisation rate to 67.7% of designed capacity, the lowest level since June.

Japan is reducing its dependence on liquefied gas due to the closure of the Strait of Hormuz by implementing gasoline subsidies, increasing coal-fired power generation, and searching for non-Middle Eastern oil barrels.

A METI document published on Thursday stated that while?Japan? has enough crude oil?and naphtha to meet the needs of its entire population, there are some supply imbalances and bottlenecks. (Reporting and editing by Kaori Kaneko, Katya Glubkova and Sonali Paud)

(source: Reuters)